A charged title refers to land or property used as security for a loan. After full repayment, the charge must be legally discharged to release the lender's interest. This guide outlines the steps involved in discharging a charged title in Kenya.
The discharge process is governed by the Land Act, 2012 and the Land Registration Act, 2012. These laws outline the rights and responsibilities of both the borrower (chargor) and the lender (chargee).
Step 1: Loan Repayment and Clearance Certificate
Ensure the loan secured by the charge is fully repaid. Upon clearance, the lender provides a loan statement confirming settlement.
Step 2: Preparation of Discharge of Charge Document
The lender prepares and signs a Discharge of Charge document to formally release the property. This document must be properly executed and sealed.
Step 3: Lodging Documents with the Land Registry
Submit the following to the Land Registry:
Step 4: Verification and Registration
The Land Registrar verifies the documents for compliance. Upon approval, the charge is discharged and the encumbrance is removed from records.
Step 5: Collection of the Updated Title
After successful registration, the borrower collects the updated title deed confirming the property is free from any encumbrances.
The discharge process typically takes 2-4 weeks. Fees vary based on the loan amount and registry charges.
Discharging a charge is crucial for restoring full property ownership rights. For a smooth process, consult a conveyancing lawyer and ensure compliance with legal requirements.
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